You know the way you’ve been turning off lights, driving less, being more frugal at the grocery store, and drinking crappier beer to reduce your spending?
Well, you’re not alone.
The same crummy economy that has nearly everyone in penny-pinching mode is also taking a toll on Pierce County’s 2008 budget. After enjoying dependable revenue growth for years, Pierce County finds itself faced with a revenue shortfall estimated to be around the $7 million mark this year — due in large part to a slowed real estate market and dropping interest rates.
How the budget got to this point is simple. For the past 25 years Pierce County has experienced some shade of revenue growth. When the budget for 2008 was created, it was based on an expected seven percent increase in general fund revenue.
Thanks to the crappy economy, that hasn’t happened. There’s the distinct possibility that Pierce County may experience no revenue growth this year for the first time in a quarter century.
The problem is apparent, and in this election year politicians in both parties have started to chime in with their solutions.
The most obvious thing to do is cut spending, and though it’s not usually a Democrat’s strong suit, County Executive John Ladenburg (who’s running to become State Attorney General) instructed his worker bees (County department heads) to start thinking about spending cuts at the end of April. The goal was a spending reduction of 1.5 percent this year, and a whopping three percent next year.
This week Ladenburg laid out $7.1 million worth of cuts from the overall ’08 budget — cuts that come mainly in the form of the postponed hiring in many departments. The cuts include holding off on six new sheriff’s deputies and trimming roughly $500,000 from the corrections budget. Things like not renting a copy machine for the Pierce County Prosecutor (which will save the County $15,000!) also make the list.
While there seems to be no question whether Ladenburg has the authority to enact a hiring freeze, some of his other proposed cuts may require the approval of the Pierce County Council, at least according to Councilman Timothy Farrell. The Council’s annual budget retreat is scheduled for next week, where Ladenburg and the Council are expected to hash out any differences and move forward with a cohesive plan.
Still, Pierce County Democratic Councilman Calvin Goings, who’s running to become the next County Executive, along with Democratic Councilman Farrell, recently laid out their own plan for fixing Pierce County’s budget dilemma. Farrell says the plans can work alongside Ladenburg’s cuts, though the Goings/Farrell plan avoids taking money and manpower away from areas of criminal justice and public safety, and focuses more on cuts in other county departments as well as steps to grow Pierce County’s economy as a whole.
The Goings/Farrell plan includes:
- A strategic economic development reserve fund to be used at the discretion of the County Executive. Both Goings and Farrell characterize the fund as a tool to “close the deal,” when situations like the Russell fiasco and the budding DaVita quandary arise. “So far the County’s been a silent partner” in the effort to keep Russell, says Councilman Goings. “Why not give the Executive every tool possible?”
- Borrowing up to $10 million for road projects intended to make it easier for businesses to move goods and services to and fro in Pierce County. Farrell classified this as the FDR approach of building out of recession while also making the County more attractive for new businesses and easing congestion.
- Temporary deferment of property taxes for homeowners facing foreclosure by the county. Currently, Pierce County will foreclose on a home if an owner is three years behind on property taxes. Goings and Farrell say it’s important to keep folks in their homes for many reasons, including overall property values, discouraging desperation selling, and county revenue. “We’re trying to keep people in their homes without completely bailing them out,” says Farrell.
While the Goings/Farrell plan differs in several ways from the cuts outlined by fellow Democrat Ladenburg, their plan is strikingly different from other ideas kicking around Pierce County Council chambers. Republican Councilman Shawn Bunney, who shockingly enough is also in the race to become the next Pierce County Executive, recently unveiled his own ideas for rectifying the county’s budget woes. Bunney’s plan is a four month study designed to investigate the possible affect of tax incentives and fee deferrals as a means of attracting more business to Pierce County.
Goings was quick to pounce on the idea.
“While some want to study the problem, we’ve got a plan of action,” says Goings.
“It’s action versus inaction. Mr. Bunney wants a four month study. That’s a typical, lethargic, bureaucratic response. Mr. Farrell and I have a concrete plan. I believe voters want elected officials who make decisions and move promptly. In a crisis they take action. Readers will have to decide which they prefer.”
So, does the fact that this is an election year play into some of this back and forth?
“Absolutely not,” says Goings. “I’m an elected official right now. This is my job.”
Farrell says he expects the Pierce County Council to be able to take action shortly after next week’s planned budget retreat. “The longer we waste the more money we could lose,” he says.